Why enter Mexico?

We should first define the market Quick Books will be pointing at: Pymes
and MiPymes. Pymes (Small and Medium Companies) and MiPymes (Mico,
Small and Medium Companies). Their general characteristics are:

Generally, owners run the business

There is a familiar component
Administration is empirical
Their main engine is human labor
They domain and establish a wider market
They are at a growing state (micro tends to be small, small aspires to be

medium)
Government concedes them some fiscal facilities
Lack of liquidity
Little productivity (considered so because of the lack of liquidity)
Low levels of personnel capacitating
Limited innovating and technological development levels. 1
Low associative capacity.
Pymes are 97% of the companies in Mexico, they generate 79% of the

jobs and provide 23% of the Internal Product. Combined with the micro
companies (MiPymes) this ciphers ascend to 99.7%, 64% and 42%
respectively.

By Size and Sector

Micro (0 to 10)

3% 1% 0%
Small (11 to 50)
Medium (51 to 250)

Big (251+)

96%

1 Below 0.5% and 0.7% respectively. 70% of Pymes do not have a technological
installation because they fear they wont be able to sustain the investment and
operation costs.

Employment.
1993

INEGI

1998

2003

44.4 43.4 42.1

Micro

16 15.3 14.7

18 16.5 16.1

Small

Medium

21.6

24.8 27.1

Big

Survival Rate for early companies in Mexico is really low; 65% of

entrepreneurial conquests will disappear two years after their creation; 25% of
them may survive with little development achievement possibilities.
The control and organizing tool mostly all organizations (even the big
ones) work with is Microsoft Excel. This is due its flexibility and practically
universal

use.

However

mistakes

often

occur

and

mysterious

data

tergiversation is almost a rule. This is frustrating and inefficient.

The market opportunities Quick Books would be facing is enormous:
2899,196 micro-companies, 101,003 small ones and 27,319 medium sized.
There are only 19,996 big companies on Mexican land, 42% of its Internal
Product is generated by the first set of entities.
Software alternatives available for Mexican users are expensive and
difficult to manage. QuickBooks Online and Microsoft Office Accounting, for
American audience, have proven to be a total success. It is pertinent to add
that Quick Books specializes on the subject.
Because of the empirical administration Pymes work with, their low
association capacity and over usage of human labor we may imply that an
efficient tool is the magic wand they are waiting for.
Cases

of

this

discovery

are

already

occurring.

Alternativas

Capacidades, an NGO association uses Quick Books as the tool that elaborates
its complex budget planning, financial statements for its donors and control
over the working hours of its collaborators. Article 19, another NGO has heard

of this wonderful tool and has begun its implementation as well. What they
both seek for is simplification.
A third case taken from a Q-Books users forum sates:
I use QB pro as the Treasurer of the Lake Chapala Society in Ajijic
Mexico. Payroll and IMSS issues are complicated so we use an accountant for
paying the IMSS - I note there does not seem to be a separate payroll system
for Mexico. Also Mexico Banks do not interface with QB. We are non-profit so
we use the accountant to file any tax reports. Pesos and USD are easy to
convert.
From this statement we can see that even the tool is not designed
thinking on this users, they found it and adapted. Who would restrain if it is
molded to fit their needs?
Quick Books would provide Mexican Pymes the precise tool for
organization management in an autonomous, independent and efficient way.
This tool will combine administrative and accounting procedures closely
related. Its friendly use will give access to the system for every member of the
company involved in the process.

Why Intuit? Why Quick Books Online?

Any business that pays taxes is obliged by law to have an accounting
control. With a written or electronic journal; hiring someone to do it or with an
external accountant.

There are two types of accounting products:

Enterprise Resource Planning (ERP).

Administrative and Accounting tools. Commercial examples are:

Systems Applications and Products, SAP. An independent German

Services that include

software vendor that offers a comprehensive portfolio of business'

performance and optimization solutions.

Since

it

is

very

complete

product

(besides

accounting tools, it includes controls for inventory, sales,

supplies, clients, etc.), its license is really expensive.
Therefore, in Mexico generally big corporations are the only
ones

that

use

it,

s.a.

ITAM.

Its

complexity

requires

professional usage.

Oracle. Very used in Mexico by specialized accountants.

Compaq. Also very used in Mexico. Needs as well special knowledge

about its functioning. Known to have a tedious installation procedure.

Accounting Express. Microsoft's product available for free on its 2008
version. Similar to QuickBooks, even on its only-availability in the
U.S.

These products are not available online and are obtained in an

"Installation Package".

Quick Books Online. Available only in the US.

2.

Only Accounting.

COI. Handles only credit and debit transactions. Functions like an

electronic T account for a companys chart of accounts. Its
limited functionality makes it less efficient.
QuickBooks Online is the specific product of Intuit which we are

interested on. An administrative/Accounting software of friendly use

(no extreme expertise handling skills needed), available at a
reasonable price. There is no such thing on Mexico.
QB favorable characteristics:

Combines administrative and accounting tools into one system.

Suppliers,

Clients,

transactions,

budgets,

reports,

banking

Everything is included so that it will be simple, easy and fast to

handle and interpret results.

Of friendly use. Steps are easy to follow. It has help windows that
pop out to resolve any question you may think of. These windows are

clear and dynamic.

It is an Online Product. From any computer with decent internet
connection the user may log in to its account and work.

No installation software required. Besides the benefit of there

being no starting delays, updates occur automatically.

There will exist only one version of the companys files. Not 100 files
with the modifications done by the several entities that apply change.
2

It is Safe. Intuit manages its users information with a

really safe system3 that includes several copies on
different formats. Intuit products have Trust-E certification. A seal that
warrantees them as an honest, trustable company. No information

will be lost nor stolen.

It is really cheap compared to alternatives on Mexico. QuickBooks
monthly fee is around 40 dls. and has no installation costs. The next
cheapest options go from 600 to 4500 dollars, plus installation, plus
expert implementation.

All of these characteristics make QuickBooks Online a desirable product

for any small/medium company that seeks future growth. It is a tool that
simplifies running a company.
For

managing

business

that

seeks

development,

accounting

information needs to be taken into consideration for detecting growth

possibilities and inefficient processes. If the accounting part is done externally,
the most frequent scenario is a complex communication chain that restrains
advance. The more the company grows, the bigger pie accounting costs take.
Fiscal expenses (and everything this involves, like having accounting
control) represent an average of 16% of the total cost of a manufactured
product. These accounting costs may be diminished with the QuickBooks
software. If the organization grows, the costs do the opposite. Until it grows big
enough that it needs a bigger package. Intuit offers many more, which are all
compatible among them. This means there would be an escalation step, not a
drastic change. Therefore QuickBooks represents a long-term cost advantage
commodity.

2 This occurs commonly between administrators that use excels as an organizing tool .
3 Secure Socket Layer encryption technology (SSL)

Generally, the case of this small/medium sized entities is that their head
handles a little of everything around the company and suddenly gets stuck with
enervating procedures. This harms the organization and can even drive it to
bankruptcy.
Given that QuickBooks is such a good tool for what it does, why
shouldnt it work? If users find it easy to use and effective, why wouldnt they
recommend it? If it works, and is recommended, why wouldnt it sell? There is
no room for failure if the product is good and has a smooth entrance in the
market.

A Successful Entrance
Given that QuickBooks is such a good tool for what it does, why shouldnt
it work? If users find it easy to use and effective, why wouldnt they
recommend it? If it works, and is recommended, why wouldnt it sell? There is
no room for failure if the product is good and has a smooth entrance in the
market.
For Quick Books, switching to the Mexican version would be easier than
any fresh-starting competition. Language and Mexican Tax and Law rules are
the most important points. The rest are only details.
Another key point would be to enter strong. Gain automatic recognition
and become a brand that defines the concept. It should be the Kleenex of
online accounting. Even more, it should be a symbol of Mexican Entrepreneurial
Culture and Success. Promotions, Ads, university try-outs, Pymes fares,
Business-Foster events, etc. Quick Books should be everywhere and in every
mouth. A discovery of simplicity, effectiveness, and problem-solving tool.
There should be special attention on ensuring that the customers
understand how the system works. Put together events where customers get to
know the product advised by a Quick Books advisor. A 01 800 line 24-7 where
all questions get answered.

Sustaining the Business

The project (simple and accessible accounting/administrative software
designed for Mexican users) comes from a problem: Pymes sunken growth.
This tool resolves a big problem, solved by no one else yet, the prodigious
chances for success are based on it.

Furthermore, because Pymes attend diverse necessities, adverse

circumstances for ones do not take down the others. This way, the group of
Pymes as a whole is a steady support for a strong sustainable country.
Little and medium companies have particular importance for the national
economy. They make substantial contributions to production and service
demands. They create jobs. They represent an excellent impulse for
economical development and even wealth distribution.
Whos involved?
People that look for jobs find shelter on Pymes. Because of the
flexible structure they have, it represents a potential opportunity for workers
seeking professional growth. This is quality labor hand that the patria desires.
Pymes may offer all this commodities, only if they can function
efficiently. Otherwise, outer horizons will remain unexplored because all
resources are assiduous on maintaining the boat afloat. Quick Books will help
them on this matter.
The Mexican government needs to find an income source for its
population. It also needs someone to charge taxes from to sustain itself. The
Ministry of Economy and the Ministry of Finances would generously appreciate
Quick Books performance.
Quick Books frankly does not need the Mexican audience. It is doing
really well with the already loyal and happy American customers. Still, not
crossing the border represents a prodigious lost opportunity; given that the
extra-effort is really low in comparison with other possible applicants.
The give and take between the contestants will find its equilibrium
depending on who plays its cards better. The best negotiation for Quick Books
is to first play hard to get, so the government will pitch in investing on software
arrangements and promoting. Even a complementing contract could come out:
Quick Books launches a Mexican version, and SAT gives
them the exclusivity for automatic tax checking. It is a win-win
situation: Q-Books has a competitive advantage and SAT has
granted further massive taxation charging.
SHCP, the federal Treasure Ministry would not flout a bigger taxable
base. It could even eliminate 2009 increasing taxation necessity. The Ministry
of Economy has Pymes and their development on their mind too. They have

several programs to incentive this sector such as Mexico Emprende, Financial

help, Investment plans and Consulting Advisory.
Once it is well established and recognized familiarly in the new lands, QBooks would only have to concentrate on what they are good at: listening to
the customer and innovating their material. Competition will then be at a
timing disadvantage and Quick Books updating facilities between its improved
versions will be a reason for customers to remain unwavering.
Margarita Gomez Macas states: Not knowing about information
systems,

lacking

infrastructure

and

weak

entrepreneurial

vision

within

technological sights may bring a company to bankruptcy.

QuickBooks diminishes the importance that scarce financial resources
have on PyMes development by diminishing costs; enlightens the future picture
with clear reports based on the daily movements. Relevant family businesses
may finally find a way to blossom. It has to point out all of these qualifications
on the first launching stage in order to assure its long-term favorable position.
QuickBooks should keep on mind that micro-companies generate over 6
million jobs and small and medium companies create over 4.4 million.
Compared against 4.3 million generated by the big corporation, we may clearly
state that Pymes are Mexico's burgeon engine. Therefore Q-Books, that has a
lot to offer, and has a lot to ask for. It has an impact on a sector that generates
7 out of 1 jobs.
A Beginning-Business Culture yet to be defined on Mexico may wear a
brand: Quick Books Online. Farther products Inuit may offer given the success
of his pilot product will then be identified with success guarantee. A value chain
hard to beat.